PROPERTY AND EQUIPMENT, NET

12 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET:

Property and equipment, net, consisted of the following (in thousands):

	September 30, 2016			September 30, 2015
Land	$	44,848		$	45,534
Land improvements	100,466			97,838
Buildings and improvements	1,737,053			1,733,924
Furniture and equipment	560,947			555,884
Construction in process	34,770			11,386
Subtotal	2,478,084			2,444,566
Less: accumulated depreciation	(1,151,540		)	(1,092,511		)
Total property and equipment, net	$	1,326,544		$	1,352,055

Depreciation expense totaled $73.3 million, $77.0 million and $79.6 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. The Authority did not recognize any capitalized interest for the fiscal years ended September 30, 2016 and 2015. Capitalized interest totaled $735,000 for the fiscal year ended September 30, 2014.

In September 2008, the Authority suspended certain elements of its Project Horizon expansion due to a slowdown in business volumes and uncertainties in the financial markets. Costs incurred on the suspended elements related to excavation and foundation work for a planned podium and new hotel tower, as well as professional fees for design and architectural work.

During its fourth quarter ended September 30, 2014, the Authority further re-evaluated its plans with respect to the development of the new hotel element of the project, which then included a hotel to be developed and owned by an instrumentality of the Tribe, as well as a third-party developed and owned retail center, and, based on new design plans, including the final location of the planned hotel, determined that certain design and earthwork related assets did not have any future benefit to the Authority. Accordingly, the Authority recognized a related $5.0 million impairment charge, which was recorded in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014.

In March 2015, the MTFA agreed to develop the planned hotel. The Authority received approximately $1.3 million as payment for the carrying value of the remaining hotel-related assets which were transferred to MTFA. Concurrent with this transaction, the Authority re-evaluated the planned third-party developed and owned retail center, including master planning costs, and determined that these elements of the project were no longer feasible. Accordingly, the related assets did not have any future benefit to the Authority, and, during its second quarter ended March 31, 2015, the Authority recognized a related $2.5 million impairment charge, which was recorded in the accompanying consolidated statement of income for the fiscal year ended September 30, 2015. There are no assets remaining related to the suspended elements of Project Horizon.